Nasdaq 100 Index surged as Netflix powered past subscriber forecasts, while performance of blue chips was mixed
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Earnings set the tone for American equities today, with strong results from Netflix Inc. bolstering technology indexes, while blue chips were mixed. Treasuries rose and the dollar edged lower.
The Nasdaq 100 Index surged as Netflix powered past subscriber forecasts, while the Dow Jones Industrial Average slipped on disappointing results from Procter & Gamble and Johnson & Johnson. Blowout earnings in the past two weeks have bolstered stocks to records, with 82% of S&P 500 firms that have reported topping estimates.
The 10-year Treasury yield fell the most in nearly a month after the Bank of Japan signalled it’ll maintain generous stimulus. The dollar fell toward lows of the year, though it rallied versus Mexico’s peso after the Trump administration’s protectionist trade move against China rekindled fears over Nafta. Emerging-market stocks advanced an eighth day and West Texas crude futures hit $64 a barrel.
“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
With earnings season in full swing, investors held to the risk-on stance that’s taken stocks around the world higher. The synchronized global economic recovery shows no signs of slowing and the BOJ’s signal added to optimism that central banks won’t rush to tap the brakes. Investors also kept an eye on Davos, Switzerland, where the world’s business elites gathered for an annual conference roiled by protectionist moves across the Atlantic.
These are the main moves in markets:
Stocks
The S&P 500 Index rose 0.2% as of 12:30pm New York time. The Dow Jones Industrial Average slipped 19 points to 26,194.68. The Nasdaq Composite Index advanced 0.6%. The Stoxx Europe 600 Index gained 0.2%. The MSCI All-Country World Index climbed 0.4% to the highest on record. The MSCI Emerging Market Index increased 1.1% to the highest in a decade.
Currencies
The Bloomberg Dollar Spot Index fell 0.1%. The euro rose 0.2% to $1.2283. The British pound was steady at $1.3989. The Japanese yen gained 0.5% to 110.38 per dollar, the strongest in almost 19 weeks.
Bonds
The yield on 10-year Treasuries decreased two basis points to 2.63%, the largest decline in almost four weeks. Germany’s 10-year yield was little changed at 0.56%. Britain’s 10-year yield was steady at 1.355%.
Commodities
Gold rose 0.3% to $1,338.23 an ounce, the highest in a week. West Texas Intermediate crude increased 1.3% to $64.38 a barrel. Copper futures fell 2.6% to $311.50 per pound, most since December 5.
Copyright Bloomberg News
Related stories:
Why blue chip stocks aren’t the best choice
Economist sets date for end of bull market
The Nasdaq 100 Index surged as Netflix powered past subscriber forecasts, while the Dow Jones Industrial Average slipped on disappointing results from Procter & Gamble and Johnson & Johnson. Blowout earnings in the past two weeks have bolstered stocks to records, with 82% of S&P 500 firms that have reported topping estimates.
The 10-year Treasury yield fell the most in nearly a month after the Bank of Japan signalled it’ll maintain generous stimulus. The dollar fell toward lows of the year, though it rallied versus Mexico’s peso after the Trump administration’s protectionist trade move against China rekindled fears over Nafta. Emerging-market stocks advanced an eighth day and West Texas crude futures hit $64 a barrel.
“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed yesterday, so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, said by phone. “But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
With earnings season in full swing, investors held to the risk-on stance that’s taken stocks around the world higher. The synchronized global economic recovery shows no signs of slowing and the BOJ’s signal added to optimism that central banks won’t rush to tap the brakes. Investors also kept an eye on Davos, Switzerland, where the world’s business elites gathered for an annual conference roiled by protectionist moves across the Atlantic.
These are the main moves in markets:
Stocks
The S&P 500 Index rose 0.2% as of 12:30pm New York time. The Dow Jones Industrial Average slipped 19 points to 26,194.68. The Nasdaq Composite Index advanced 0.6%. The Stoxx Europe 600 Index gained 0.2%. The MSCI All-Country World Index climbed 0.4% to the highest on record. The MSCI Emerging Market Index increased 1.1% to the highest in a decade.
Currencies
The Bloomberg Dollar Spot Index fell 0.1%. The euro rose 0.2% to $1.2283. The British pound was steady at $1.3989. The Japanese yen gained 0.5% to 110.38 per dollar, the strongest in almost 19 weeks.
Bonds
The yield on 10-year Treasuries decreased two basis points to 2.63%, the largest decline in almost four weeks. Germany’s 10-year yield was little changed at 0.56%. Britain’s 10-year yield was steady at 1.355%.
Commodities
Gold rose 0.3% to $1,338.23 an ounce, the highest in a week. West Texas Intermediate crude increased 1.3% to $64.38 a barrel. Copper futures fell 2.6% to $311.50 per pound, most since December 5.
Copyright Bloomberg News
Related stories:
Why blue chip stocks aren’t the best choice
Economist sets date for end of bull market
